Investors
For interested investors & guarantors:
For investors concerned with creating impact, guarantees can be a powerful tool. By taking unfunded guarantees and pooling them together, the CIGP will:
- Centralize a source of credit enhancement for intermediaries
- Reduce complexity by building capacity to deploy and manage guarantees
- Accelerate community investment without requiring current endowment liquidity
- Mitigate losses by sharing them pro-rata across a pool of guarantors
Email cigp@locusimpact.org for our investor guide and additional information. If you’re interested in becoming a guarantor, enter your information via our intake form.
Guarantors and Investors
CIGP Impact
CIGP will track and evaluate impact on three levels: loan, program and field.
In measuring loan level impact, metrics will be determined by sector area. Some possible metrics could include but are not limited to:
Housing: New & preserved affordable housing, workforce housing, rapid rehousing, housing for seniors/disabled individuals/veterans, etc.
Small Business: Jobs created/preserved, living wage jobs, businesses led by entrepreneurs of color, women
Climate: Megawatts solar power created, greenhouse gas reduced, energy generated for sale
Sample Guarantee Use Cases
Sector
Affordable Housing and Climate Solutions
Impact Summary
Save 1,800 low-income people $19mm in system lifetime energy bills and reduce CO2 emissions
Loss Position
First-loss protection credit enhancement and liquidity facility to protect third party lenders
Sector
Small Business and Affordable Housing
Impact Summary
To support successful developers of color growing their project size and winning more bids for local private and municipal development contracts
Loss Position
First loss credit risk protection on portfolio of affordable housing related developer loans
Sector
Small Business
Impact Summary
A new fund will support CDFI small business loans to exclusively female entrepreneurs of color with expected impact of wealth creation, new job creation and narrowing wealth gap
Loss Position
Second loss position in credit risk protection (additional loan loss reserve) on an asset-pool of CDFI loans
Sector
Small Business
Impact Summary
Start-up food co-ops will create access to healthy foods for over 13k families, create 340 living wage jobs, strengthen 1800 small local farms and generate $10mm of economic activity in local communities
Loss Position
Second loss credit risk protection; supplemental loan loss reserve on a portfolio on new loans
Sector
Small Business
Impact Summary
Strengthen the businesses and wealth of entrepreneurs of color in Persistent Poverty Zone low-income and Counties in the Delta States
Loss Position
Capped second-loss credit risk protection
